Amazon to Launch in South Africa and Challenge Takealot: Report

Amazon plans to launch an online marketplace in South Africa as part of its global expansion next year.

Leaked documents seen Business Insider (paid access) show that the retail giant plans to expand to at least five new territories next year, including Belgium, Chile, Colombia, Nigeria and South Africa.

Plans to launch Amazon in South Africa, codenamed “Project Fela,” show that the company expects to launch its marketplace in South Africa in February 2023. This will include its own marketplace and the launch of the Prime membership program. The country also plans to launch in Nigeria in April 2023 under the same project code name.

January 2022 MyBroadband reported that Amazon was eyeing warehouse space in South Africa. Amazon has not commented on its warehouse plans, but industry speculation suggests it wants to launch online shopping services.

However, MyBroadband has since learned that Amazon has reserved warehouse space in South Africa and is in talks with courier companies and local FMCG retailers.

Amazon is facing competition in online shopping, primarily from Naspers-owned Takealot. Takealot also owns Mr D’s delivery service and Superablist, an online fashion retailer under the local umbrella.

According to the results released in November, the group’s revenue grew by 36%, while trading losses narrowed to almost break even, with a trading loss of $2 million (31 million rand).

Mr. D Food did well, Naspers said, with order volumes up 88% as consumer spending shifted from restaurant dining to online delivery. Superbalist increased revenue and sales margins despite growing competition from mainstream fashion retailers.

Read: Recession warning: more likely than not this year, says Nomura